Turkey approves Russia gas pipeline

Erdogan and Putin agree to allow Moscow use of Turkish waters for energy project.

06 Aug 2009 20:07 GMT

Putin, left, and Erdogan, agreed to allow Moscow the use of Turkish waters for a gas pipeline project [AFP]

Silvio Berlusconi, Italy's prime minister, also attended the signing ceremony in a show of support for potential investment in the pipeline project in which Italian oil and gas giant Eni is involved.

EU competition

The deal would put Russia in direct competition with a European Union-backed pipeline project known as Nabucco, which bypasses Russia to transport gas from the Caspian Sea to Europe via Turkey and the Balkans.

Putin on Thursday acknowledged that the South Stream project would rival the EU one, but he suggested both pipelines were necessary.

"It is obvious there is demand for South Stream," he said.

"Even with the construction of South Stream, Nabucco will not be closed.

"The more infrastructure projects, the better, because that will create reliability and stability of energy supply to Europe."